S.F. CEO tax could raise $300M a year, but might cost 900 jobs, controller says

"Over the next 20 years, the report found, San Francisco could see a net loss of 944 jobs and $206 million in gross domestic product. But it would also see up to $300 million in new city funds from taxes, every year."

"Supporters, including labor groups, say the money is needed to help close the city's $643 million budget deficit and protect public services. Opponents, including several billionaires and city corporations, say the measure could make San Francisco more expensive for major employers and push companies to move jobs elsewhere."

"The existing tax - the Top Executive Pay Tax - applies to certain large businesses with wide pay gaps between top executives and typical workers. An analysis found that some of the firms fighting the tax had CEO-to-worker pay gaps up to 1,690-to-1."

"Prop. D would raise taxes on some large companies where executives make far more than regular workers - including company workers outside the city. That change would also mean more companies would be subject to the Top Executive Pay Tax than are today."

Proposition D, the “overpaid CEO tax,” would raise taxes on certain large companies with large pay gaps between top executives and typical workers, including workers outside San Francisco. The Top Executive Pay Tax would apply to more companies than under current rules. The controller’s office estimates the measure would raise about $250 million to $300 million per year in direct taxes for the city’s General Fund. The report also projects economic costs, including a net loss of 944 jobs over 20 years and a $206 million decrease in gross domestic product. The tax would affect large firms in information, retail, and financial sectors, and supporters cite budget deficit relief while opponents warn of higher costs and job relocation.

Read at Mission Local